Fireworks sellers across the border battle for Chicago buyers

Uncle Sam is one of about a dozen fireworks shops packed along Indiana's border competing for the business of hordes of Chicagoland residents driving across the state line to escape Illinois' ban against fireworks.

Most Americans slow down their work routines as July Fourth approaches. But for Miranda Panos, the first days of this month are the most hectic of the year.

Panos, a manager at Uncle Sam Fireworks in Hammond, Ind., works from 8 a.m. to midnight in the week before the nation’s birthday, subsisting on Aurelio's Pizza ordered via speed-dial. She oversees 15 staff members helping customers pick from the store’s bewildering selection, ranging from a $6 box of bottle rockets to the $700, six-foot-tall “Godfather” combo pack. Every other day, a distributor stops by to replenish the supply.

The frenzy doesn't end until late on the night of July 4 - there's usually one last surge around 10 p.m., she said, when people run out of fireworks and come for more.

"People say, 'You don't get to do fireworks?' No, this is my fireworks," Panos said, gesturing toward the shop full of customers and colorful bundles of explosives.

Uncle Sam is one of about a dozen fireworks shops packed along Indiana's border like a football team's offensive line. In the weeks before July 4, they compete for the business of hordes of Chicagoland residents driving across the state line to escape Illinois' ban on consumer fireworks.

The stakes are high. Illinois provides the lifeblood for many of the businesses. Greg Kaplan, owner of Krazy Kaplan's, said that about 75 percent of his sales come from the state.

And a huge portion of the stores’ revenue comes from July 4. Uncle Sam makes 85 percent of its sales between Memorial Day and July 4, Panos said, while the number for Krazy Kaplan’s is between 93 percent and 95 percent. During the July 4 season, Kaplan supplements his year-round staff of about 15 full-time workers with about 250 part-time workers.

Many of the stores buy from local distributors, but about 99 percent of the products were made in China, Kaplan said. The Chinese invented fireworks several centuries ago, many scholars believe.

Indiana’s fireworks stores got a big boost about a decade ago when the state loosened its regulations of the industry, Panos said. Before then, customers could only shop at the stores if they showed an Indiana driver's license and signed a contract saying they wouldn't explode the devices in the state.

The looser laws, as well as the increasing popularity of fireworks, have caused a proliferation of fireworks stores in recent years. With more stores, there's more competition, and slimmer profit margins, Kaplan said. At a maximum, he sells his products at about two or three times the price he paid for them.

To catch Chicagoans’ business, store owners say it’s crucial to be as close to the border as possible. Uncle Sam sits in a former railroad station about 20 feet from the state line, but it's not as close as nearby Discount Fireworks, on State Line Road. Kaplan's main store is 3 miles from the border, but easily visible from Interstate 90, especially with the help of a hot-air balloon and two-story Incredible Hulk posted outside.

"It's location, location, location," said Kaplan, who started selling fireworks from his basement in 1985 and now has seven Krazy Kaplan's locations. "The closer to the state line, the better your business is going to be."

Uncle Sam, which has been around for about 35 years, gets much of its business from repeat customers, Panos said. Kaplan, on the other hand, spends about 6 to 10 percent of his store's budget on advertising, including more than 250 billboards featuring the dynamite-holding, strait-jacket-wearing mascot he drew himself 25 years ago.

Khaled Kiswani, who owns a small fireworks shop, American Independence Fireworks, in Hammond, said his business has suffered from competition with larger stores. When he opened up 12 years ago, his fireworks sales were about four or five times what they are now, he said. He's coped by diversifying his business - today, he also services computers and sells insurance and cigarettes from the shop. Fireworks are only about 10 percent of his business.